While it might seem like a good idea to keep your personal bank account and business bank account with the same bank, I’d advise against it.
The reason I recommend you keep your accounts at separate banks or building societies is that in the event that you have a problem with one account, the bank may, at its discretion, enforce its power and put a freeze on your other accounts thus rendering you completely impotent.
Let’s say, for example, that you find yourself in the same situation as the proprietor of the cleaning company I told you about earlier. Were you to find yourself in this unfortunate situation it’s quite probable that the bank would freeze your personal account as well as your business bank account, which as you can imagine would even be more disastrous.
Believe me, in business things can always get worse!
Despite your best efforts there may be times when either your customers let you down or an unforeseen bill presents itself and suddenly you find yourself overdrawn beyond your limits. Before you know it everything is frozen.
Tips:
Contingency plan your banking by having a number of bank accounts with different banks or building societies.
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